Jack Fund Guidelines

South Florida Mini-Gators Chapter

of the Little People of America, Inc. (LPA)

Whereas in December 1998 the South Florida Mini-Gators Chapter of the Little People of America, Inc. (hereafter referred to as "the Chapter") became the beneficiary of $40,000 from the estate of John J. Schmidt, Jr.;

Whereas the $40,000 is payable to the Chapter in cash and from monthly payments on a residential mortgage assigned to the chapter on the property owned by Henry Mohr at 616 North 5^th Ave, Lake Worth, FL 33460;

Whereas in December 1998 the Chapter received a check in the amount of $16,376.50 and expects the $23,623.42 balance to be paid in 53 installments of $444.09 per month with a final payment being made in May of 2003;

Whereas under the terms of John J. Schmidt, Jr.'s estate the funds are to be used by the Chapter for charitable or educational purposes in accordance with the tax-exempt purposes of LPA;

Whereas the Chapter established a Medical Transportation Fund for the benefit of chapter members in the 1970s;

Whereas the Chapter has agreed to merge the Medical Transportation Fund with the Jack Fund;

FUND MANAGEMENT

1. The fund will be managed by the Jack Fund Committee, which will be comprised of the Chapter President, Chapter Treasurer, and three other chapter members (whose two-year terms will expire the year after the election for Chapter officers).

2. The three other chapter members should be selected with a view to representing diversity in the chapter membership -- parents, Little People, average-sized, siblings, men, and women -- and to ensure competent management of the funds.

3. The restricted funds should be invested as follows:

(a) Sixty percent (60%) in fixed equities (i.e. with a guaranteed return) and forty percent (40%) in variable equities (i.e. stocks and bonds);

(b) The fixed equities portion should include a mix of money market and short term (up to 1-year) and long-term (more than 1-year) CD accounts;

(c) The variable equities portfolio shall comprise the following risk levels: one half moderate and one half conservative.

4. One hundred percent of the funds should be protected by the FDIC guarantee.

5. The Jack Fund Committee is authorized (but not obliged) to distribute up to                    seven-point-five percent (7.5%) of the value of the Fund each year. A distribution in excess of 7.5% of the value of the Fund will require the approval of three-quarters of the chapter members present at a meeting for which notice is given in at least two chapter newsletters prior to the meeting.

6. The Chapter commits to an annual fundraising program so that the capital of the Jack Fund is not depleted. This will be especially needed in a year where investment earnings are modest and applications are numerous.

7. Chapter Treasury reports will include information on the Jack Fund assets, income, and expenditures.

8. The Jack Fund Committee will make quarterly reports to the chapter on its management and distribution of funds.

USE OF FUNDS

1. The funds may only be distributed for charitable or educational purposes.

2. Charitable purposes is defined by federal tax law to include: (1) relief of the poor and distressed or of the underprivileged; (2) advancement of education or science; (3) lessening of the burdens of Government; (4) promotion of social welfare, (5) eliminating prejudice and discrimination; and (6) defending human and civil rights secured by law.

3. The charitable purposes for which the funds may be distributed include, but are not limited to, the following:

• Underwriting a portion of the cost for a family or individual to attend a district or national LPA meeting for the first time.
• Paying the annual membership dues for a family or individual unable to meet this expense.
• Sponsoring a seminar designed to eliminate prejudice and discrimination.
• Sponsoring a medical clinic.
• Paying reasonable transportation expenses to an out-of-state medical appointment related to the diagnoses or treatment of an individual with dwarfism.
• Paying meal and accommodation expenses for an out-of-state medical appointment.
• Purchasing (in whole or in part) adaptive equipment, such as: pedal extensions, custom seat cushions, computer adaptations.
• Purchasing (in whole or in part) personal aids not covered by medical insurance, such as: hearing aids.
• Purchasing (in whole or in part) personal items, such as: custom shoes.

4. Educational purposes is defined by federal tax law to include: (1) the instruction or training of the individual for the purpose of improving or developing his or her capabilities; and (2) the instruction of the public on subjects useful to the individual and beneficial to the community.

5. The educational purposes for which the funds may be distributed include but are not limited to the following:

• Scholarships for a summer camp with an educational goal.
• College tuition aid scholarships.
• College room and board scholarships.
• College book and supply scholarships.
• Music lesson tuition.

APPLICATIONS

1. An applicant must be a paid chapter member, or well known to the chapter, when making an application and receiving a distribution.

2. Except in the case of an emergency, an applicant is ineligible to receive a distribution if either the applicant, or any other member of the applicant’s household, has received a distribution from the fund in the last 24 months.

3. Applications should be submitted in writing to the Jack Fund Committee by mailing, faxing, or e-mailing a copy to both the Chapter President and Chapter Treasurer.

4. Jack Fund distribution decisions will be made by the Jack Fund Committee upon application or by grant.

5. An applicant may be asked by the Jack Fund Committee to submit documents in support of an application.

6. Decisions made by the Jack Fund Committee will be final.

GUIDELINE AMENDMENTS